I’d recommend saving that $295 cash flow for some amount of time until you have considerable cash reserves saved up.

I have referred a loan out of state based on NOI, cap rate at purchase, room for increase income and purchase price vs market value.Maybe I didn’t articulate the intent of the post as clearly as I hopedFor anyone who has bought multi family out of state, “what are gives you the warm and fuzzies about a deal”:Obviously not cap rate, but maybe vacancy rate,  Cash on Cash ,GRM, IRR, Unlevered free cash flow, Cities over 250k?

With your primary residence, things can be pretty straight forward in terms of splitting mortgage interest, real estate taxes etc. on your returns.If you go into a rental property, there are a lot of considerations to think about.

The won't insure you or they will jack up the price considerably. 

definitely need to have lawyer look at it.Risks/additional hurdles- On the practical side, the absence of deeded rights makes tenancy in common ownership considerably more risky than condominium ownership, even where the TIC owners have separate financing.

They are pretty unique conversions, it does take considerable time, effort and money!

Since buyers will be putting so much consideration into the kitchen, installing new cabinets, countertops, and a nice backsplash is vitally important!

I care most about the Internal Rate of Return (helps me determine how long to hold a property), the cash on cash return (helps me decide why this investment vs other options, and it also takes into consideration appreciation of the property!)

Rents increased about 5% per year, and when you take 5% on $3,800, that's almost a $200 per month increase for the year!

So, my first caution is it would be healthy not to expect similar results on certain real property investments/deals in the current and near future cycles.That said, there are multiple considerations and clarity needed, before I would act on any investments with your equity.